Earnings: Coinbase Hits Top as Crypto Volatility Pushes Revenue to $2.0 Billion
Coinbase is declining despite upbeat results released after the close of trading on Tuesday.
Hey Hisa Fan,
Coinbase Global, the cryptocurrency trading platform listed on the New York Stock Exchange [NYSE] posted impressive second-quarter gains, beating analyst expectations.
Trading volumes on the platform stood at $462 billion, surging from the $335 billion the company posted in the fiscal first quarter. The company’s net income was at $1.6 billion for the quarter, up from $32 million a year ago.
Coinbase generated $2.0 billion in net revenue, including $1.9 billion in transaction revenue and more than $100 million in subscription and services revenue despite the volatility faced by Bitcoin and other cryptocurrencies.
The earnings pushed the company’s profits surging by a whopping 4900% compared to a similar period last year. This pushed the company’s earnings per share to $3.45 from the $2.33 which most analysts had forecasted.
Over the second quarter, Coinbase posted solid growth and diversification across its platform with the Retail Monthly Transacting Users (MTUs) growing to 8.8 million, up 44% from Q1 2021 and raising the verified users on the company’s platform to 68 million.
Going forward, Coinbase forecasts that the Cryptocurrency trading space is still in the early growing stages and the company foresees a double-saw when/if central bankers are given powers to regulate the space.
Coinbase was listed in April on the NYSE at a price of $381 per share, the share price was on a steady decline as investors watched the value of the crypto-linked activities including trading volatility and the China crackdown on Crypto trading.
As at close of trade yesterday, the company’s share price dipped further 3.85% to $269.67 per share despite the solid earnings, with the company forecasting that the third quarter may be a challenging one for them.
It’s a wrap from us!
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